The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit (petrol) to major marketers importing petroleum products into Nigeria, citing concerns over the blending of its products with imported fuel.
An official of the refinery confirmed the development to The PUNCH, saying the company would no longer supply petrol to marketers involved in importing petroleum products.
“We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products,” the source said.
Another source said the refinery had shifted its focus to independent marketers and other operators not involved in importing petrol.
“We are selling to independent marketers and others who are not importing,” the source stated.
The decision reportedly contributed to moves by some fuel marketers to seek a court order compelling the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences.
The affected marketers are said to be concerned that they could face supply challenges if they are unable to import petrol while being denied access to products from the Dangote refinery.
The refinery had previously warned that it could stop doing business with fuel importers whom it accused of blending its Euro-5 petrol with imported grades.
Dangote Refinery said such practices could make it difficult for consumers and regulators to distinguish products supplied directly by the refinery from those subsequently blended or handled by third parties.
“It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery,” the refinery had said.
However, some importers and petroleum marketers have criticised the restriction, describing it as an attempt by the refinery to prevent competition from imported petrol.
One marketer argued that Dangote could not determine whether consumers or retailers should combine petrol obtained from different suppliers.
“We know what Dangote is trying to do. He is just trying to block imports,” the marketer said.
The marketer compared the situation to motorists buying petrol from different filling stations and argued that one supplier could not prevent its product from being combined with fuel purchased from another supplier.
Another marketer said the Federal Government had a responsibility to ensure adequate petrol supply and protect consumers, insisting that imports would remain necessary whenever domestic production was insufficient.
Speaking on the development, National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hamed Fashola, said Dangote appeared to be selective in deciding which marketers to supply.
“I don’t know how far that is correct; Dangote now sells to only IPMAN. I think somehow the information I have is that Dangote is selective about it, say those that are involved in importing. I think it’s not everybody that is importing,” he said.
Fashola added that independent marketers would continue to source products from suppliers offering competitive prices, whether from local refineries or importers.
“We buy our product anywhere we feel it is cheap. Anywhere we see the product, we go for it, both Dangote and the importers. We always go for the best price,” he said.
IPMAN National Publicity Secretary, Chinedu Ukadike, said he believed the Dangote refinery remained open to business with marketers.
Ukadike said independent marketers were willing to purchase products from different suppliers and were not currently involved in importing petrol.
He said he could not confirm whether importers were blending Dangote petrol with imported products but maintained that the refinery was best placed to determine measures to prevent such practices.
“I believe that the Dangote refinery is open for business and that it will continue to sell to marketers. The issue of blending, I cannot say yes or no, because I’m not part of those who are importing. Independent marketers are not importing yet; we are just marketers who buy and sell,” Ukadike said.
He added that the priority of independent marketers was to continue purchasing and selling petrol while allowing the refinery to adopt measures it considered appropriate to prevent adulteration or unauthorised blending.
The development has intensified the ongoing debate over the balance between domestic petrol production and imports as marketers, regulators and the Dangote refinery continue to differ over fuel supply, pricing and product quality.
